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Illinois Statutes Chapter 505. Agriculture § 17/45. Investment requirements

Current as of January 01, 2025 | Updated by Findlaw Staff

§ 45. Investment requirements.

(a) This Section applies to all production contracts that have capital investment requirements.

(b) Except as provided in subsection (c), a contractor shall not take action to terminate or cancel a production contract until the contractor has done the following:

(1) Provided the producer with written notice of the intention to terminate or cancel at least 60 days before the effective date of the termination or cancellation.

(2) Reimbursed the contract producer for the value of the remaining useful life of the capital investment items. In calculating this reimbursement amount, the contractor may take into account the producer's ability to use the capital investments in other business enterprises of the producer and the opportunity to recoup the cost of the capital improvements by sale or lease.

(c) Exceptions. A contractor may terminate or cancel a production contract without remedy as required in subsection (b) if the basis for the termination or cancellation is any of the following:

(1) A voluntary abandonment of the contractual relationship by the producer. A complete failure of a producer's performance under a production contract shall be deemed to be abandonment.

(2) Failure of the producer to meet the specific provisions of the contract and failure to remedy his or her default.

(3) The conviction of a producer of an offense of fraud or theft committed against the contractor.

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Cite this article: FindLaw.com - Illinois Statutes Chapter 505. Agriculture § 17/45. Investment requirements - last updated January 01, 2025 | https://codes.findlaw.com/il/chapter-505-agriculture/il-st-sect-505-17-45/

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